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Sen. Cardin releases letter in support of credit unions

Mon, Nov 11, 2013

Columbia, Maryland

In a letter of response to constituents dated November 8, 2013, Sen. Ben Cardin expressed his support for credit unions, their mission, and their current tax exempt status. Writing to credit union members that have written to his office in support of maintaining the credit union tax exemption, Sen. Cardin wrote:

"Thank you for contacting me about the importance of maintaining credit unions' tax-exempt status. I agree with you that credit unions play an important role in our economy, which was especially apparent during the financial crisis. I strongly support credit unions and will carefully consider any proposal that would alter these institutions' ability to compete in the market.

"As you know, the Federal Credit Union Act of 1934 made credit unions eligible for tax-exempt status if they meet certain criteria: operating on a not-for-profit basis, organized without capital stock, and operating for mutual purposes. Credit unions serve many vital roles in our society. They provide competition for large financial institutions and also tend to be more reliable sources of credit for individuals and small businesses. I agree with you that negatively altering their tax status would have serious consequences for consumers and small businesses.

"As a member of the Senate Finance Committee, I participated in weekly meetings to discuss tax reform options. My colleagues and I are committed to enacting a simpler and fairer tax code and I am hopeful that we can get this done for the American people. Rest assured that as we continue to consider reform options going forward, I will continue to support credit unions and the choices in financial institutions that they provide. America needs strong credit unions.

"Thank you again for writing to me about this important issue and feel free to contact me in the future regarding this or any other matter of concern to you."